Foreign-used car dealers want the Government to reduce taxes on foreign used hybrid cars. Visham Babwah, president of the T&T Automotive Dealers Association (TTADA), said his association, along with representatives of new car retailers met with officials of the energy ministry on Monday to discuss the impact of the increase in the price of premium gasoline.
Babwah said TTADA is in full support of the removal of the fuel subsidy and believes the use of hybrids and electric cars are the way forward rather than compressed natural gas (CNG). Babwah said the nation is fed up of hearing talk of the use of CNG for more than two decades while nothing substantial has happened.
He said there are only five filling stations for CNG in Trinidad and none in Tobago. Babwah said there is a lack of infrastructure for CNG and the Government proposes to put down 40 stations for the filling of CNG which might take more than a decade to complete.
"What will happen in the meantime?" Babwah asked. He said even the Ministry of Energy has a hybrid car that burns 60 per cent less fuel. Babwah said hybrids are the car of choice in developed countries and offer an immediate solution to the problem of extensive fuel consumption.
Babwah said he has sold four foreign-used Honda Civic hybrids at a cost of $130,000 each and consumers were demanding more.
Babwah said a hybrid has an electric battery life of 15-20 years and is extremely reliable. He said a tax cut for used hybrids would see people switching to these vehicles unless the Government decides to continue with its agenda to impose CNG onto motorists.
He said cars do not come down from Japan with CNG apparatus installed because it's illegal to do such installations in used vehicles there.
He said CNG creates several problems for the user, including reduced engine power, reduced driving capacity on a tank of fuel and the lack of infrastructure for refuelling.
Babwah said the owners of luxury SUVs, contractors, yachts and the owners of transportation fleets should be paying a higher price for fuel since they could afford it. He said the ministry must develop a system, electronic or otherwise, that would see the high end user coughing up more cash for diesel.
Automotive Components Ltd (ACL), O'Meara Road, Arima, is the only company the Ministry of Energy has granted a license to to install CNG kits. Neil Francois, station manager at ACL, said on October 1 in response to Finance Minister Larry Howai announcing a 44 per cent increase in the price of premium gas, that ACL installs new sequential CNG?kits which are computerised.
The sequential kits, a multi-point fuel injection system, represent the new generation of bi-fuel CNG conversion system. The kit is made up of various electronic components which can be installed in any vehicle.
"Any power loss between gasoline and CNG is negligible," Francois said.
